(CHA) Concha

CONSOLIDATED STATEMENT OF CASH FLOW

FOR THE PERIOD FROM 1 JULY 2011 TO 31 DECEMBER 2011

NOTES TO THE UNAUDITED INTERIM REPORT

FOR THE PERIOD ENDING 31 DECEMBER 2011

1.             BASIS OF PREPARATION

The consolidated interim financial statements have been prepared on a going concern basis and in accordance with the recognition and measurement principles of International Financial Reporting Standards adopted for use in the European Union ("IFRS") and expected to be effective at the year end of 30 June 2012. The accounting policies are unchanged from the financial statements for the year ended 30 June 2011.

The interim financial statements for the period ended 31 December 2011 have not been audited and do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.  Statutory accounts for the year ended 30 June 2011, prepared in accordance with IFRS, have been filed with the Registrar of Companies. The Auditors' report on these accounts was unqualified, did not include any matters to which the Auditors drew attention by way of emphasis without qualifying their report and did not contain any statements under section 498 of the Companies Act 2006. 

This Interim Financial Report was approved by the Board of Directors on 27 March 2012.

Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ('IAS') 34 - Interim Financial Reporting as adopted by the European Union. Accordingly the interim financial statements do not include all of the information or disclosures required in the annual financial statements and should be read in conjunction with the Group's 2011 annual financial statements.

Basis of consolidation

The consolidated financial statements comprise the financial statements of Concha Plc and its controlled entities. The financial statements of controlled entities are included in the consolidated financial statements from the date control commences until the date control ceases.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

All inter-company balances and transactions have been eliminated in full.

Foreign currencies

The functional currency of each entity is determined after consideration of the primary economic environment of the entity. The group's presentational currency is Sterling (£).

Turnover and Segmental Analysis

The Group has adopted IFRS 8 which is required for all annual reports and interim financial statements starting 1 January 2009 or later.

The reportable segments identified make up all of the Group's external revenue, which is derived primarily from the design, production and sale of branded apparel. The reportable segments are an aggregation of the operating segments within the Group as prescribed by IFRS 8. The reportable segments are based on the Group's management structures and the consequent reporting to the Chief Operating Decision Maker, the Board of Directors. Our sector results are attributable to the design, production and sale of branded apparel and corporate costs. The design, production and sale of branded apparel are carried over three continental segments, Australia, Europe and United States. Corporate costs are borne by the United Kingdom. Income and expenses included in profit for the year are allocated directly or indirectly to the reportable segments. Reporting for group is subsequently split into continuing and discontinuing operations in accordance with IFRS 5 on the basis of the sale of the Company's assets agreed by the Board in November 2011.

Inter-company balances comprise arms' length transactions between operating segments making up the reportable segments. These balances are eliminated to arrive at the figures in the consolidated accounts.

2.             TURNOVER AND SEGMENTAL ANALYSIS

SEGMENT REPORTING (CONTINUED)

3.             LOSS PER SHARE

The calculation of the basic and diluted earnings per share is based on the following data:

The denominator for the purpose of calculating the basic earnings per share has been adjusted to reflect all capital raisings. Due to the loss incurred in the period, there is no dilutive effect resulting from the issue of share options, warrants and shares to be issued.

4.             SHARE CAPITAL

5.             CASH FLOWS FROM CONTINUING OPERATIONS

6.             EVENTS OCCURRING AFTER THE REPORTING PERIOD

On 27 January 2012 the Company successfully raised £270,000 via the issuance of 900,000,000 shares for 0.03p per share and 900,000,000 attached warrants exercisable for 3 years at 0.03p.

On 6 February 2012 the shareholders of the company approved the disposal of the business's key assets and trading stock for £950,000 along with the appointment of Mr M Barney Battles to the board as Non-executive Chairman, change of Company business to an Investing Company and the change of name to Concha Plc.  Subsequently Mr Geoffrey O'Connell, Mr Francis Ball and Mr Oscar Verden stepped down from the board. These changes were affected on 7 February 2012.

There being no on-going trading business, the Company negotiated the termination of staff and are finalising the cessation of prior trading obligations and the dissolution of corporate subsidiaries.

7.             Availability of Interim Results

Copies of the Interim Results for the six months to 31 December 2011 are available from the Company's registered address and will be available on the Company's website, www.conchaplc.com, later today.